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Treaty Energy Corporation TECO
Posted On: 06/04/2013 8:50:30 AM
Post# of 39368
Posted By: panther2
Re: BULL2222 #14423

The creditors have to prove to the court there is no "bona fide disputed claim" that is where the alleged stolen oil rig creditor is going to fail which is the weak link thats going break their case. And they have to show Treaty is not paying debts as they become due.


Debtors are subject to involuntary bankruptcy in two situations;

The first is when the debtor is generally not paying debts as they become due, unless they are the subject of a bona fide dispute. 11 U.S.C. § 303(h)(1). That includes regularly missing a significant number of payments to creditors or regularly missing payments that are large in relationship to the size of an alleged debtor's operation. In re West Side Community Hosp., Inc., 112 B.R. 243, 256-57 (Bankr. N.D. Ill. 1990). The determination that an alleged debtor is not paying due debts is made when the involuntary petition is filed. Bartmann v. Maverick Tube Corp., 853 F.2d 1540, 1546 (10th Cir. 1988).

As a matter of proof, once a petitioning creditor establishes that no bona fide dispute exists, the burden shifts to the alleged debtor to present evidence demonstrating that it does exist. In re Rimell, 946 F.2d 1363, 1365 (8th Cir. 1991), cert. denied, 504 U.S. 941 (1992). For example, it has been held that an involuntary petition could not be maintained by attorneys against a former client when their claim for legal services was subject to a substantiated counterclaim for legal malpractice. In re Ferri, 59 B.R. 656, 657 (Bankr. E.D.N.Y. 1986).














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